Small Businesses Report Increase Hiring in March

Rhea-AI Summary

The CBIZ Small Business Employment Index (SBEI) reported a 0.1% hiring increase in March, signaling a rebound after two months of declines. This index tracks trends among over 3,700 small businesses with 300 or fewer employees. Industries like Arts and Entertainment and Accommodations and Food Services saw significant hiring growth, while the West region recorded a decline of 0.82%. Executive VP Philip Noftsinger highlighted that rising inflation concerns are prompting more hiring as consumer demand increases. The report suggests an improving labor market as seasonal hiring ramps up.

Positive

• 0.1% increase in hiring for March, reversing previous declines.
• Notable hiring increases seen in Arts and Entertainment, Accommodations and Food Services, and Construction.
• 25% of companies increased staffing, signaling demand recovery.

Negative

• West region reported a hiring decline of 0.82%.
• Industries like Technology, Life Science, and Wholesale Distribution experienced hiring declines.

The CBIZ Small Business Employment Index signaled towards hiring gains after two months of decline

CLEVELAND--(BUSINESS WIRE)-- The CBIZ Small Business Employment Index (“SBEI”) reported a seasonally adjusted increase of 0.1% in March, a reversal of the hiring declines seen over the previous two months. The CBIZ SBEI tracks payroll and hiring trends for over 3,700 companies that have 300 or fewer employees, providing broad insight into small business trends.

“Inflation concerns are eclipsing coronavirus-related worries among the public, driving more individuals into the workforce and prompting greater need among businesses as consumer demand rises,” said Philip Noftsinger, Executive Vice President, CBIZ, Inc. “We are even seeing a boost in previously hard-hit sectors, with the Arts and Entertainment industry reporting its most significant hiring boost since the beginning of the pandemic.”

The ADP and Moody’s employment report indicated hiring growth among small, medium-sized and large companies. Its March reading showed an overall increase of 455,000 private-sector jobs for the month. Small businesses accounted for 90,000 of those jobs on a seasonally adjusted, month-over-month basis. The ADP and Moody’s report counts small businesses as companies with 49 or fewer employees, while the CBIZ SBEI uses data from companies with 300 employees or fewer.

The CBIZ SBEI reported the largest hiring gain in the Northeast (0.71%) region. The Central (0.08%) and Southeast (0.03%) regions showed flat to little hiring gains, and the West (-0.82%) experienced a hiring decline.

At the industry level, the most notable hiring increases were seen in Arts and Entertainment, Accommodations and Food Services, and Construction. Technology and Life Science and Wholesale Distribution experienced hiring declines.

“March activity tends to signal the start of seasonal hiring increases, as businesses prepare for the summer months, so we expect the growth observed over the last month to be an annual trend,” added Noftsinger. “While the report doesn’t show staggering growth, it is an indicator of improvement for the labor market.”

To view an infographic with data from the employment index, visit the CBIZ website.

Additional takeaways from the March SBEI include:

March’s snapshot: 25% of companies in the index increased staffing, 57% made no change to their headcounts and 18% reduced employment totals.

Industries at a glance: Hiring increases were seen in Arts and Entertainment, Accommodations and Food Services, and Construction. Technology and Life Science and Wholesale Distribution experienced hiring declines.

Geographical hiring: The Northeast (0.71%), Central (0.08%) and Southeast (0.03%) regions all experienced hiring increases. The West (-0.82%) saw a decline.

What’s next? Small businesses are continuing to rebound from a labor shortage and economic headwinds. If coronavirus cases continue to remain low, the spring months may be an opportunity for continued hiring growth for small businesses.

Editor’s note:
(1) The SBEI illustration is licensed under a Creative Commons Attribution-NoDerivs 3.0 Unported License. Based on our work at https://www.cbiz.com.

Follow CBIZ on Twitter at @CBZ or on Facebook.

About CBIZ
CBIZ, Inc. is a leading provider of financial, insurance and advisory services to businesses throughout the United States. Financial services include accounting, tax, government health care consulting, transaction advisory, risk advisory, and valuation services. Insurance services include employee benefits consulting, retirement plan consulting, property and casualty insurance, payroll, and human capital consulting. With more than 100 Company offices in 31 states, CBIZ is one of the largest accounting and insurance brokerage providers in the U.S. For more information, visit www.cbiz.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220404005191/en/

Kara Lester

Gregory FCA for CBIZ

Kara@gregoryfca.com

610-228-2119

Source: CBIZ, Inc.

FAQ

What does the latest CBIZ Small Business Employment Index report indicate for March 2023?

The CBIZ SBEI reported a 0.1% increase in hiring, marking a recovery after two months of declines.

Which sectors saw the most hiring gains according to the CBIZ report?

The largest hiring gains were observed in the Arts and Entertainment, Accommodations and Food Services, and Construction sectors.

How did geographical hiring trends vary in the March 2023 CBIZ report?

The Northeast showed the largest gain at 0.71%, while the West experienced a decline of 0.82%.

What does the CBIZ report suggest about future hiring trends?

The report indicates potential for continued hiring growth if coronavirus cases remain low.

What percentage of companies reported changes to their staffing in March 2023?

25% of companies increased staffing, 57% made no changes, and 18% reduced employment.